6. Debt

On September 30, 2019, the Company entered into a new Loan Agreement with Dominion Bank. The Loan Agreement provides for a Revolving Credit Facility in an amount up to the lesser of (i) $15,000,000 or (ii) a sum equal to (a) 80% of the Company’s eligible accounts receivable plus 100% of the amount on deposit with the Lender in the Company’s collateral account, consisting of a restricted CDARS account of $5,000,000.

Dominion Loan Agreement

Under the Revolving Credit Facility, interest will accrue at an annual rate equal to the lesser of (i) 6.00% and (ii) the greater of (a) the prime rate as published from time to time in The Wall Street Journal or (b) 3.50%. The Company will pay a commitment fee of 0.10% per annum on the difference of (a) $15,000,000 minus the Deposit minus (b) the daily average usage of the Revolving Credit Facility. The Loan Agreement contains customary covenants for credit facilities of this type, including limitations on disposition of assets. The Company is also obligated to meet certain financial covenants under the Loan Agreement, including maintaining a tangible net worth of $75,000,000 and specified ratios with respect to current assets and liabilities and debt to tangible net worth. The Company’s obligations under the Loan Agreement are secured by a security interest in the collateral account (including the Deposit) with the Lender and future accounts receivable and related collateral. As of December 31, 2019, the Company has not borrowed any amounts under the Revolving Credit Facility. The maturity date of the Loan Agreement is September 30, 2020.

The Company does not currently have any notes payable under the Revolving Credit Facility.

Veritex Credit Agreement

On September 30, 2019, the Company’s Veritex Line of Credit under the Veritex Loan Agreement by and between the Company and Veritex matured pursuant to its terms. No amounts were borrowed under the Veritex Line of Credit. In connection with the maturity of the Veritex Line of Credit and entry into the Loan Agreement with Dominion Bank, the Company paid off all amounts owed pursuant to the term loan under the Veritex Loan Agreement of $4,355,665.

Veritex Letters of Credit

As of December 31, 2019, Veritex has issued two letters of credit under the Veritex Loan Agreement. The first letter of credit is in the amount of $1,767,000 to support payment of the Company’s insurance obligations. The second letter of credit is in the amount of $583,000 to support the Company’s workers compensation insurance. Each of the letters of credit are secured by a certificate of deposit with Veritex.

Other Indebtedness

As of December 31, 2019, the Company has two notes payable to a finance company for various insurance premiums totaling $1,746,000.

In addition, the Company leases certain seismic recording equipment and vehicles under leases classified as finance leases. The Company’s Consolidated Balance Sheets as of December 31, 2019 and 2018 include finance leases of $2,412,000 and $5,125,000, respectively.

Maturities of Debt

The Company’s aggregate principal amount (in thousands) of outstanding notes payable and the interest rates and monthly payments as of December 31, 2019 and 2018 are as follows:



	December 31, 2019		December 31, 2018
Notes payable to commercial banks
Aggregate principal amount outstanding	$	—	$	5,975
Interest rate		—		5.00%


	December 31, 2019		December 31, 2018
Notes payable to finance company for insurance
Aggregate principal amount outstanding	$	1,746	$	1,680
Interest rate		4.05% - 4.99%		3.80%

The Company’s aggregate maturities of finance leases (in thousands) at December 31, 2019 are as follows:


January 2020 - December 2020	$	2,316
January 2021 - December 2021		53
January 2022 - December 2022		36
January 2023 - December 2023		7
Finance lease obligations	$	2,412

Interest rates on these leases ranged from 4.65% to 5.37%.